Wella Company exceeded expectations in terms of Profit and Growth. They also issued the first ESG manifesto outlining ambitious sustainability and DEI goals to further social impact
Wella Company, a global leader in the $100 billion hair and nail segment of the beauty industry, is marking a successful second year as a standalone company. The company delivered year-over-year double-digit profit and growth ahead of expectations. Upon the closing of the Fiscal Year 22 in June, Wella Company had beaten all targets on financial performance across the globe. Since its founding in December 2020, Wella Company has delivered continuous double-digit profit and growth ahead of expectations and is one of the fastest-growing beauty companies in the sector.
Wella Company’s portfolio includes iconic professional and retail hair, nail, and beauty tech brands Wella Professionals, O·P·I, ghd, Briogeo, Nioxin, Sebastian Professional, and Clairol.
Product Portfolio: Expansion and Successes
Wella Professionals continues to lead the company’s overall portfolio growth. Double-digit performance made it possibl to retain its #1 share in Professional Color globally. The launch of Shinefinity, a professional glazing service and a new category entry for Wella Company, was the company’s strongest color launch ever, delivering +4% above target. Momentum is also building behind the Care portfolio, led by Wella Care, Sebastian and Nioxin. Each of these also generating double-digit growth. Sebastian Professional is Wella Company’s second-largest pro brand and achieved double-digit growth this year with gains across all key markets. Such extraordinary growth is due to the brand’s unique care/styling hybrid products such as Dark Oil and No Breaker. Nioxin continued to deliver strong performance with Net Revenue growing double-digits annually in key regions like NA and EMEA. The company’s Retail Hair segment grew Net Revenue nearly +3% in FY22 while gaining shares across most key markets.
In more exciting news, the Briogeo acquisition (closed in June 2022) further solidified the company’s eco-ethical haircare portfolio. This clean and green, natural hair care business is one of the fastest-growing brands today. Briogeo sells one of its award-winning Don’t Despair, Repair! Deep Conditioning Masks every minute.
London-based ghd (good hair day) is redefining beauty tech and continues to dominate with its digital-centric strategy. The brand has delivered on average a double-digit annual growth rate over the last 4 years.
O·P·I is the #1 professional nail brand worldwide and #3 in US retail. In the US, the brand has seen 10 months of consecutive share gain in the Food, Drug, Mass (FDM) channel. Nature Strong, the brand’s first plant-based, natural origin nail lacquer, was the #1 Color Cosmetics Launch in all FDM this spring.
Expansion in eCommerce and Digital
Wella Company continues to propel growth by expanding its digital footprint and accelerating eCommerce. Its WellaStore B2B eCommerce platform continues to acquire customers globally, helping salon pros meet business needs. Such needs range from express ordering to planning their bookings to accessing training. In FY22, WellaStore grew its sales volume +30% and grew its customer base by +10%. In its consumer eCommerce channels, the company grew nearly 2.5x faster than the overall hair market, especially in EMEA and APAC.
Commitment to ESG
As the company continues to grow, it is furthering its commitment to sustainability and social impact. This commitment comprises three pillars: People, Planet and Products. In June 2022, Wella Company announced its environmental targets and its participation in the UN Global Compact, the world’s largest initiative for sustainability in business. In tandem with its second anniversary, Wella Company issued its ESG Manifesto. This is the first formal publication of its commitment to environmental, social and governance (ESG). It also encompasses a new Code of Conduct entitled WE Care. The Company will issue its first formal ESG report in 2023.
“Our first two years of business have shown the enduring potential of the Wella Company portfolio. We are re-establishing category excellence in both hair and nails. Moreover, both professionals and consumers are falling in love again with our beautiful brands,” said Annie Young-Scrivner, CEO of Wella Company. “Our continued strong financial performance, coupled with growth and gain in market share across all categories, even in the challenging global context, is proof that our business is just beginning to tap into its full potential.”